Aubrey Capital Management will take over the management of Global Value Investors' (GVI) funds, sparking a number of GVI redundancies.

The transition will start immediately and it is expected the overall change to the portfolio composition will take place over the next two weeks. 

The decision comes after the GVI board decided the performance of the fund had not been optimal.

"The board believes that the investment performance has not been sufficiently adequate in recent years," GVI chairman Reub Hayes said.

"We also believe that Aubrey's track record as well as its highly experienced team of investment professionals offers investors a stronger proposition in terms of global equities investment and experience."

According to data from Morningstar, the GVI Global Industrial Share Fund lost 7.9 per cent since the start of the calendar year.

Over the three years to 18 November 2011, the fund added 3.1 per cent, while over a five-year period the fund lost 3.2 per cent.

Hayes said GVI would not be wound up completely and would continue to be the licensed entity and investment manager for the funds, however, Aubrey would be the sub-adviser to the funds.

Treasury Group, which supports both boutique investment firms, will take a controlling equity ownership position in GVI, and Treasury Group Investment Services will continue to be the responsible entity of the funds.

Treasury Group chief executive Andrew McGill said the relatively low funds under management of GVI of $300 million also played a part in the decision to transfer the management of the funds.

"There were a variety of factors that came into play and cost was a factor for sure," McGill said.

"The investment performance is the first factor. It has been disappointing for a period of time."

A number of GVI staff will stay on to assist with the transition, while others were made redundant yesterday.

But McGill did not reveal how many people were made redundant.

"That is deliberate, because it is an evolving situation," he said.

GVI joint managing director Grant Cullens will stay within the Treasury Group portfolio of businesses for the foreseeable future.

"It is difficult to say much about that today. But we have a high view of Grant's ability as an asset manager and we are hopeful we can find an appropriate role for him," McGill said.

The GVI funds will be renamed in the first half of 2012.

"Over time it makes sense to have the fund reflect the sub-investment manager and strategy," the firm said.

"The funds will be renamed the Aubrey Growth and Income Fund and the Aubrey Growth and Income Fund Unhedged."

These funds will be run by Aubrey chief investment officer Andrew Dalrymple and head of research Sharon Bentley-Hamlyn.

Investors in the GVI funds who stay with the fund will receive a management fee reduction of 10 per cent on the current 1.23 per cent a year.

"This reduction will apply whether the fees are negotiated or not," the firm said.

"This discount will be a flat 10 per cent and will take effect from 1 December 2011."